Other Matters

There are many reasons directors might find themselves in a financial crisis.

• Bank pressure or actual foreclosure action where bank is just trying to get you off their books can be distracting and ultimately devastating for for directors.
• Then there are legal actions, statutory demands and wind up notices. If you’re receiving those it’s time to develop a hard headed fall back plan.
• Another thing in that category is the director penalty notice. Like the statutory demand you have 21 days before consequences become serious. A director penalty notice leads to the directors’ personal liability if not addressed.
• If a director owes the company money because he’s been taking drawings a liquidator can sue on his director loan account.
• Then there are personal guarantees, and where personal assets were used as security for the business, like the family home.
• Insolvent trading is another risk which can be dealt with but needs to be addressed.
• And even disputes among directors can cripple a company and destroy a business if not mediated.